1
SOCIAL SCIENCE ECONOMICS USE 3--
ACCOUNTING EXAM 1 FORMULAS
Dr.
Closing Entry for + Net Rev Cr.
Income
Exp
Cr. Retained Earnings
Dr. Retained
Closing Entry for
Dividends Earnings Cr.
Dividends
Assets increase with debits
Liabilities increase with credit
Owners Equity increase credit
with
Expenses increase with Debit
Revenue increase with credit
Dividends increase with Debit
Journal for Dr. Depreciation Expense
Depreciation Cr. Accumulated Depreciation
Expense
Net Income Equation Revenues - Expenses = Net Income
Assets
Balance Sheet Headers Liabiliti
es
Stockholder's Equity
Beginning Balance
Statement of +/- Net Income/Loss
Shareholders' Equity - Dividends
= Ending Balance
Increase by Debit Assets, Dividends, Expenses
Increase by Credit Common Stock, Liabilities, Revenue
Found on Income Revenue, Expenses, Net Income
Statement
Found on Balance Sheet Assets, Liabilities, Equity
, 2
Types of Equity Common Stock, Preferred Stock, Retained Earnings
Accounting Equation Assets = Liabilities + Equity
records increases and decreases in assets,
account
liabilities, common stock, dividends,
revenues, and expenses
general ledger collection of all accounts used by business
posting transferring information from a journal entry to a
ledger account
an accounting record in which transactions
journal
are initially recorded in chronological order
Receiving Cash Debit it
Paying Cash Credit it
trial balance a report that lists account balances by debits and
credits
Revenue Recognition requires revenue to be reported when earned
Principle
requires expenses to be reported in the
Expense Recognition
Principle same period as revenues are earned
another name for cost of cost of sales
goods sold
Equity formula Common Stock - Dividends + Revenues - Expenses
SOCIAL SCIENCE ECONOMICS USE 3--
ACCOUNTING EXAM 1 FORMULAS
Dr.
Closing Entry for + Net Rev Cr.
Income
Exp
Cr. Retained Earnings
Dr. Retained
Closing Entry for
Dividends Earnings Cr.
Dividends
Assets increase with debits
Liabilities increase with credit
Owners Equity increase credit
with
Expenses increase with Debit
Revenue increase with credit
Dividends increase with Debit
Journal for Dr. Depreciation Expense
Depreciation Cr. Accumulated Depreciation
Expense
Net Income Equation Revenues - Expenses = Net Income
Assets
Balance Sheet Headers Liabiliti
es
Stockholder's Equity
Beginning Balance
Statement of +/- Net Income/Loss
Shareholders' Equity - Dividends
= Ending Balance
Increase by Debit Assets, Dividends, Expenses
Increase by Credit Common Stock, Liabilities, Revenue
Found on Income Revenue, Expenses, Net Income
Statement
Found on Balance Sheet Assets, Liabilities, Equity
, 2
Types of Equity Common Stock, Preferred Stock, Retained Earnings
Accounting Equation Assets = Liabilities + Equity
records increases and decreases in assets,
account
liabilities, common stock, dividends,
revenues, and expenses
general ledger collection of all accounts used by business
posting transferring information from a journal entry to a
ledger account
an accounting record in which transactions
journal
are initially recorded in chronological order
Receiving Cash Debit it
Paying Cash Credit it
trial balance a report that lists account balances by debits and
credits
Revenue Recognition requires revenue to be reported when earned
Principle
requires expenses to be reported in the
Expense Recognition
Principle same period as revenues are earned
another name for cost of cost of sales
goods sold
Equity formula Common Stock - Dividends + Revenues - Expenses
